NPS, UPI, GST and more important rules change from October 1
NPS, UPI, GST: Based on the announcements several new rules and changes are set to come into effect in October 2025, particularly impacting the National Pension System (NPS), UPI, and the pricing of LPG.
1. National Pension System (NPS) Changes:
Multiple Scheme Framework (MSF): Non-government sector subscribers will be allowed to hold and manage multiple investment schemes under a single Permanent Retirement Account Number (PRAN). This provides greater flexibility for investors.
100% Equity Allocation: Non-government subscribers will have the option to invest up to 100% in equity (shares) in a single scheme under the new framework, allowing for potentially higher, though riskier, long-term returns.
New Tier System (Proposed): A new Tier system might be introduced, distinguishing between Tier-1 (retirement-focused, tax benefits) and Tier-2 (flexible, non-retirement savings, fewer tax exemptions).
Minimum Contribution Increase (Proposed): There is a proposal to increase the minimum monthly contribution for NPS to Rs 1,000 from the current Rs 500.
2. UPI Changes:
Discontinuation of ‘Collect Request’: The UPI ‘Collect Request’ feature, often used to ask a contact for money, is expected to be discontinued to prevent fraud and scams.
UPI Limit Increase (Reported): There are reports suggesting the UPI transaction limit may be raised to Rs 5 lakh per transaction to facilitate high-value payments.
3. LPG and Interest Rates:
LPG Price Revision: The prices of domestic and commercial LPG cylinders are reviewed by oil marketing companies on the first day of every month, including October 1. A revision (increase or decrease) is a regular monthly possibility.
Interest Rates (General): While the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) meetings are generally held every two months, banks may individually revise their Fixed Deposit (FD) and lending interest rates at any time. No major regulatory change in interest rates is specifically tied to October 1.
Other Important Changes:
Online Gaming Regulations: New laws are set to be enforced to regulate the online gaming market, focusing on consumer protection, stricter verification, and anti-addiction measures.
Train Ticket Booking (IRCTC): Reports suggest that for a specific initial duration (e.g., the first 15 minutes) of online reservation, booking will be reserved only for Aadhaar-authenticated users to curb the activity of middlemen.
GST Changes: Several amendments to the GST law, enacted through the Finance Act, 2025, including changes to definitions and provisions for credit notes and return filing, will come into force from October 1, 2025.
Cheque Clearance: The RBI’s initiative to transition the Cheque Truncation System (CTS) to continuous clearing and settlement on realisation is scheduled to begin its first phase on October 4, 2025, which could lead to faster cheque processing.
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